Best Buy Raises Full-Year Outlook After Computing-Driven Q2 Beat

Best Buy beat Wall Street's fiscal second-quarter estimates on Thursday and raised its full-year guidance, powered by a 4.1% jump in comparable sales that far exceeded the 1% it had forecast. The consumer electronics retailer reported net income of $315 million, or $1.48 per share, for the three months through Aug. 1, up from $186 million, or 87 cents, a year earlier. Adjusted earnings came in at $1.47 a share.

Revenue guidance for the full fiscal year now sits at $42.3 billion to $42.8 billion, up from a prior range of $41.2 billion to $42.1 billion. The company sees comparable sales rising 1.9% to 3%, compared with an earlier forecast that spanned a 1% decline to a 1% gain. Adjusted earnings per share are expected at $6.70 to $6.90, versus the previous $6.30 to $6.60 range.

Growth ran across every major category, with computing leading the way. The quarter also included a $34 million benefit from tariff refunds that boosted the gross profit rate.

The quarter was the last under outgoing CEO Corie Barry. Incoming CEO Jason Bonfig takes over on Nov. 1. He called the results "a healthy demand environment for our category" in a statement, crediting deliberate moves to position the business for growth.

Best Buy has been working through a sales slump marked by declining foot traffic and cautious consumer spending. Customers remain value-focused, the company said, buying with specific needs and budgets. Tariffs and rising memory-chip costs are still headwinds.

Bonfig has flagged two strategic shifts: opening smaller-format stores to reach areas that cannot support a full-sized location, and using artificial intelligence to improve the in-store experience and back-office processes. The Q2 performance shows some of those efforts are gaining traction ahead of schedule.